"The inflation
figures in the Euro zone have created a shock,"
Sapin told AFP in an interview, an expanded version of which
was made available to Business Insider. "We need a new
discourse among political and economic actors. We must
immediately take this into account as decisions get
made."

The normal policy levers used to fix growth have broken
down, Sapin said.

"The textbook is quite flexible in cases of recession or
weak growth, but now we've discovered another matter that is just
as destabilizing for budgets as weak growth, which is weak
inflation," he said.

The government had been seeking to defer 1.5 billion Euros
in spending on an assumption of 1.5% inflation, mostly through
benefit freezes. Now, Sapin said, those
reserve outlays are likely to be reevaluated.

"Adding to deferred spending doesn't seem well suited to the
situation," he said.

The French government recently collapsed after former
economic minister Arnaud Montebourg criticized President Francois
Hollande for spending aggressively enough to revive
demand.

Sapin will present his budget to Prime Minister Manuel Valls in
three weeks.